Kinds of Subcontractor Business Financing
Other subcontractor financing applications include purchasing equipment, buying real estate, consolidating high-interest loans, refinancing business debt, and other business operational uses.
Bank Subcontractor Loans
Term loans are considered the premier form of financing for those looking to get funds for their company. Subcontractors can use these bank loans for an array of applications. These are the least expensive kind of financing for subcontractors. Common uses include capital expenditures, working capital, general operational expenses, and equipment purchases.
Subcontractor SBA Guaranteed Loans
An SBA loan is another great kind of financing for those looking for true bank-rate financing, but have not been successful in obtaining it. The SBA uses this loan program to bring in lenders to give credit facilities to small-sized businesses in America. The government agency agrees to cover a portion of the lender’s losses if the subcontractor fails to repay the loan.
Instead of buying equipment outright, a different option to get equipment is this form of leasing. By leasing a piece of equipment rather than buying it, neither does the contractor have to pay its full price upfront, nor will it be left with an outdated unit, as it is possible to return that piece when the leasing period ends.